GBP/JPY is under pressure. The pair broke below its previous ascending trend line, and is likely to post new weaknesses. A bearish cross between the 20-period and 50-period moving averages has just been identified (a strong negative signal). Last but not least, the relative strength index is bearish and calls for further downside.
To sum up, as long as 138.50 is not surpassed, it is likely decline to 137.50 and 137.10 in extension.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 137.50. A break below this target will move the pair further downwards to 137.10. The pivot point stands at 138.50. If the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 139.00 and the second one at 139.45.
Resistance levels: 139.00, 139.45, and 140.15
Support levels: 137.50,137.10, and 136.70
The material has been provided by InstaForex Company - www.instaforex.comfrom www.instaforex.com
